Indonesia: Selected Issues
IMF Staff Country Reports, August 7, 2024
Source details
- Canonical URL
- Indonesia: Selected Issues
Other formats
Bibliographic details
- Published: August 7, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400284663.002
Objective and Scope
- Explores structural reforms to achieve high-income status in Indonesia.
- Notes Indonesia aims to achieve high-income status by 2045.
- Focus areas include infrastructure and logistics quality, business environment improvements, and laying the ground for an infrastructure base capable of supporting stronger economic activity.
- Emphasizes inclusive growth through minimizing human development gaps.
Major Findings
- Strengthening infrastructure and logistics and improving the business environment are needed to support stronger economic activity.
- Achieving inclusive growth requires efforts to enhance heath, reduce labor vulnerability and informality, and address gender gaps to level up living conditions broadly, without dividing the population between those gaining from stronger growth and those left behind.
- Results indicate that reforms in the following areas should be implemented in priority:
- external sector regulation and economic openness,
- governance,
- business regulation,
- human development.
- These priority reforms would enhance inclusiveness and support a leveling up of living standards for the country as a whole.
- The reforms are complementary and likely to deliver stronger output effects when bundled together.
Policy Recommendations
- Prioritize reforms in external sector regulation and economic openness to foster integration and competitiveness.
- Strengthen governance and business regulation to improve the business environment and support firm performance.
- Invest in human development policies targeting health, labor vulnerability and informality, and gender gaps to ensure inclusive gains from growth.
- Bundle complementary reforms to amplify output effects and support a nationwide leveling up of living standards.
Subject Areas and Keywords
- Subject: Export diversification, Exports, International trade, Labor, Labor markets, Macrostructural analysis, Structural reforms
- Keywords: enterprises landscape, estimation result, Export diversification, Exports, financing barrier, firm performance, firms' access, Global, Labor markets, medium enterprise, Structural reforms
Content in this bundle
- Indonesia: Selected Issues; IMF Country Report No. 24/271; July 2, 2024